Naira Appreciates at Black Market, Depreciates at Interbank, I&E

December 24, 2019
Naira against pound sterling
Image Credit: The Sun

By Adedapo Adesanya 

Transactions at the foreign exchange (forex) market closed mixed at the different segments of the market on Monday, December 23, 2019.

While at the parallel market, the local currency appreciated against the three major foreign currencies, it depreciated at the interbank and Investors and Exporters (I&E) segments.

At the black market, the Naira gained N1 against the American currency to trade at N362 to a single United States Dollar compared with the N363/$1 it traded at the previous session.

The domestic currency also appreciated by N1 against the Euro at the same market window to settle at N400/€1 yesterday in contrast to N401/€1 it exchanged last Friday.

Also, at the parallel market, the Nigerian Naira improved by N2 against the British Pound Sterling, trading at N478/£1 at the close of transactions against N480/£1 it was sold at the previous session.

At the official window of the Central Bank of Nigeria (CBN), which is also known as the interbank segment, the local currency depreciated by 5 kobo or 0.02 percent against the Dollar to trade at N307/$1 on Monday instead of the N306.95 per Dollar it was traded last Friday.

Similarly, the domestic currency went down by 11 kobo equivalent to 0.03 percent against the American currency to quote at N364.17 to a single Dollar compared with N364.06 it was transacted against the greenback at the previous session.

This decline occurred despite a reduction in the demand for forex at the investors window during the day’s session. Data obtained from FMDQ showed  that tTransactions worth $121.68 million were recorded on Monday in contrast to $271.27 million achieved last Friday, indicating a decline by 55.1 percent or $149.59 million.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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